The EU and the G-20

 •  Filed under EU, fiscal policy and taxation, International economics

The G20 and the EU: A Win-Win Game

The EU in the G20 represents all EU Member States. As some EU Member States are also G20 members (France, Germany, Italy and the UK) or permanent guests (Spain), EU representatives play a key role in the coordination process of the EU positions in the G20. The aim is to provide as much as possible a consistent message on the EU policy stance and actions to the rest of the world.

The common European negotiating position on "finance track" topics is stated in so-called "terms of reference". This is a short document which summarises the EU common view on the topics present in the Finance Ministers' and Central Bank Governors' agenda.

... The G20 finance track has benefited from the particular presence of the EU among its members, as the EU, thanks to its long experience in the field of economic policy coordination, has been able to bring innovative proposals and solutions to improve and strengthen the G20 cooperation and coordination process. In the meantime, the EU has greatly benefited from the G20 peer pressure and support, in particular during the difficult period of the sovereign debt crisis. In addition, as we have shown, important synergies have developed between the G20 and the EU in various areas.

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Enhancing policy coherence between the G20 Growth Strategies and Employment Plans:

In order to provide a “ball-park” estimate of the potential employment gains from the [Growth Strategies], OECD used a simple “top-down” approach. Essentially, this estimates the aggregate employment impact for each G-20 economy by applying historical estimates of the elasticity between GDP growth and employment growth to the estimated increase in GDP implied by the GS.1 This gives an estimate for the G20 as a whole of around 10 million extra jobs by 2018.